Trump's Brazilian Trade War
If both sides carry through on their threats, a trade war is on between the two largest countries in the Western Hemisphere. Lucas Ferraz, a former Brazilian secretary of foreign trade, estimates that the new tariffs could spark a 75% drop in Brazilian exports to the U.S. But it won't be a party for American businesses either. Brazilian commodities fuel American consumption and production. Notwithstanding Mr. Trump's assertions to the contrary, the U.S. has a trade surplus with Brazil. American exporters, particularly industrial manufacturers, will be harmed if they lose market access to this huge middle-income economy.
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